In a remarkable display of market confidence, HIMS & Hers Health, Inc. (HIMS) stock has soared to an all-time high, reaching a price level of $25.77. This significant milestone underscores the company's robust performance and investor optimism in its business model and growth prospects. The health and wellness brand, known for its direct-to-consumer telehealth and wellness products, has seen a surge in demand, propelling the stock to unprecedented heights. Meanwhile, in a related market movement, Oaktree Acquisition Corp (NYSE:HIMS) has reported a staggering 1-year change, showcasing a 243.76% increase, which reflects a buoyant period for certain sectors in the stock market, despite broader economic uncertainties.
In other recent news, Hims & Hers Health, Inc. demonstrated impressive financial performance with a 77% year-over-year increase in third-quarter sales, surpassing $400 million, and a significant EBITDA growth, reaching over $50 million. This led to several notable developments, including Piper Sandler raising the company's target to $21, Needham increasing the target to $28, and TD Cowen maintaining a positive stance with a $25 target. Citi also lifted its share price target for the company, while Truist Securities maintained its Hold rating with a steady target of $23.
Despite concerns about the company's ability to continue offering compounded GLP-1s, firms expressed optimism due to the robust growth in the core business. Hims & Hers also announced plans to increase marketing expenditures in Q4 and to launch liraglutide, the first generic GLP-1, in 2025.
Looking ahead, the company is forecasting Q4 2024 revenue between $465 million and $470 million, marking an 89% to 91% year-over-year increase. The full-year revenue is projected to be between $1.46 billion and $1.465 billion, reflecting a 67% to 68% increase. These are recent developments in the company's operations.
InvestingPro Insights
HIMS & Hers Health's recent stock performance is backed by solid financial metrics and positive analyst sentiment, according to InvestingPro data. The company's revenue growth is impressive, with a 56.7% increase over the last twelve months as of Q3 2024, and an even more striking 77.13% quarterly growth in Q3 2024. This rapid expansion is complemented by a healthy gross profit margin of 81.13%, indicating strong pricing power and efficient cost management.
InvestingPro Tips highlight that HIMS has been profitable over the last twelve months, with analysts expecting net income to grow this year. The company's PEG ratio of 0.14 suggests that it may be undervalued relative to its growth prospects, despite trading at a high P/E ratio of 49.34. This could explain the stock's significant price appreciation, with a 243.76% return over the past year.
For investors seeking deeper insights, InvestingPro offers 18 additional tips for HIMS, providing a comprehensive analysis of the company's financial health and market position.
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